Montgomery County sentinel. [volume] (Rockville, Md.) 1855-1974, 1887-01-28
REGULATING RAILROADS.

REG CLAIIAG hAlLROADS.
What is known as the interstate COM
merce bill has passed both Houses of Con-
gress and will no doubt receive the approval
of the President, The provisions of the law
are Of so much interest TO farmers and other
shippers of produce that we devote con-
siderable portion Of our space to lucid
of its provisions, as given by
a writer in the Baltimore Sun of Tuesday
last:
The evils which the interstate commerce |
bill is designed to correct are summarized |
by its authors in the following charges:
That local rates are unreasenably high COM
pared with through rates, and that at non
competing points both local and through |
rates are unreasonably high, in consequence |
often of pooling arrangements; that rates |
are not proportioned to the cost of service,
but based on"what the traffic will bear" that |
unjustifiable Determinations are made be- |
tween individuals and localities in the rates |
charged for like service under similar cir
cumstances, and also between articles of |
freight of like character, and between differ |
cnt quantities of the same class of freight; |
that the existing system of secret special |
ldlIs, iCDdtCS anu uIdWDdChS lOotcIS UiO-
nopolies, enriches favored shippers and pre- |
vents free competition in lines Of trade in |
which the cost Of transportation is an i'm |
portant factor; that secret cutting of rates |
and sudden fluctuations demoraliZe bust |
ness and often occasion heavy losses that |
as regards shipments over lines embracing |
more than one railroad or traysrsing several |
States, the individual roads often avoid their |
responsibility as carriers, TO the injury OF
shippers; that the different methods Of class
flying shipments in use in various parts Of
the country lead TO vexatious misunder-
standings and are often made means Of
extortion; that the granting Of passes creates
a privileged class, to the injury of passengers
not thus favored that, in the effort TO pay
dividends on watered stock and interest on
bonds Improperly issued, unreasonable rates
are often charged; that railroad corpora
tions engage in lines of business other than
that of transportation, and that undue ad
vantages are afforded TO business enterprises
IN which Railroad officials are interested:
finally, that extravagant and wasteful man
agement OF railroad business imposes need.
less tax upon the shipping and travelling
public by spending large sums to maintain
agents engaged in reckless strife for com
petitive business. Embracing as il does pro-
visions bearing directly or indirectly on all
these points, the interstate commerce bill, it
will be found on examination, is a searching
and comprehensive measure. 1t was not
hastily concocted, as is sometimes asserted,
but was the joint production Of Represen-
tative Reagan, who has given over decade
OF years te its composition, and of Senator
Cullom, who has made il his chief study for
two years past. The leading requirement
is that the rates charged on lines Of trans.
portation crossing State lines shall be "rea-
sonable and just" Rates may not be put
unreasonably high, but must bear some pro-
portion TO the cost of service. Ne maximum
rate is fixed in terms, but the railroad com
mission created by the act is competent TO
rule that any given rate complained of,
whether for transportion, handling or ster-
age, is excessive and must be reduced The
requirement that rates shall DO "just" is the
pith of the act Unjust determinations,
whether by special rates, rebates, awbacks,
"or other device, are prohibited, under pen
atty of fine not 10 exceed $1,000 for each
sffense Any preference or advantage given
to any particular person, company, firm, cor
peration, locality or description of traffic
subjects the offender to fine. These two
provisions make unlawful practices through
which thousands of persons and localities
have grown rich at the expense Of ether per-
sons and localities. The large shipper, for
example, under the act, will not "get spe-
cial rate" because he is large shipper. The
small shipper who ships single ton of a
given article by rail will pay no more per
ton for its carriage than his rich rival who
ships hundred times as much every day of
the year. The Standard Oil Company will
pay the same that others do, and the great
coal companies will find it impracticable
under the act TO fix the price of coal in all
the great cities and make the sale of it a
virtual monopoly by means of agreements
as to the rates made with the railroads. BY
no scheme of rebates, drawbacks, "or other
device" will the railroads be permitted
longer to build up pet firms or localities, in
which their officials may have an interest,
and wreck their rivals through discrimi-
mating rates devised to that end The long.
and-short haul section is particularly di.
rected against injustice to localities. Under
that section it will not be feasible to charge
more for hauling carload offreight ten miles
than is charged fer hauling 1t over the same
line In the same direction hundred miles
The farmer Of parts Of Virginia, West Vir.
ginia and Maryland at present finds compe.
tition with Western producers ruinous, be-
cause he pays more for the carriage of his
grain to Baltimore than the Illinois farmer
does. The high rates paid by the farmer in
these States actually 60 TO pay the expense
of hauling his competitors grain at unre.
muneratve prices Under the act shippers
living east Of the Alleganies will at least be
on an equal footing with the shippers living
west Of the Mississippi. Immense relief will
thus be afforded both TO individuals and tc
localities that have been sacrificed TO through
business. II is quite possible that the lower.
ing of local rates will on some lines require
higher through rates where the local rates
were not simply exorbitant. The long.
and short haul section will permit the es.
adjustment Of industries throughout the
couatry at any point presenting natural ad.
vantages, and will correct the present ten.
dency To concentrate manufacturing enter.
prises in great cities or other competitive
points only where the rates are low. The
effect will be to multiply thriving villages,
develop local enterprise, and make living in
the country more popular because less ex.
pensive than at present The termini oil
railroads will cease TO absorb the capital
business and brains Of the country, but these
will be more equally divided between city
and couHtry. An important provision q
the act is the requirement that intersectine
railroads shall afford facilities for the inter
change of traffic, and shall not discriminate
in their rates between connecting lines. Thii
will tend to harmonize schedules and lesser
the time and money lost at present by pas
sengers and freight in "lying over" Tin,
prohibition of pooling will tend to lowe
rates in some cases by reviving competition
and throwing business TO the best roads
The publicity Of rates required by the &C
will facilitate the application of all its pro
visions. Reasonable and just rates, ARRANGED
without reference 10 "cuts" or rebates, anC
Published, will tend TO become fixed, anc
dispense with pools which are at best bu
imperfect devices for making rates stable
In the absence of the pool the shipper will
be able to ship his goods by such road as h,
may prefer, instead Of having II sent by SOM
other, perhaps insolvent road able to avoit
the payment Of damages for losses Inflicted
AS rates may not be advanced without tel
days notice, source at present of great los
10 shippers will be avoided. II is objecteS
TO railroad commissions that they ultimatel,
fall under the power Of railroads. This i
provided for by the clause Of the act unde
discussion, which gives the complainant th,
option Of going before any district or circui
court Of the United States for redress If b,
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